HOW TO OPEN A BANK ACCOUNT IN NIGERIA

Opening a bank account in Nigeria is very easy. You could either walk into a bank to start your registration process or you can register online and generate a bank account on the bank’s platform. Nigeria has a fairly developed banking sector with plenty of choice.

Some of the known retail banks in Nigeria includes:

• First Bank of Nigeria
• Zenith Bank
• Guaranty Trust Bank
• Access Bank
• Sterling bank
• Wema bank
• Polaris bank
• United Bank of Africa
• Union bank
• Eco bank
• Unity bank
• Keystone bank

TYPES OF BANK ACCOUNTS OPERATED IN NIGERIA

The type of bank accounts operated in Nigeria include

• Savings Account

The savings account is mostly operated by a high number of individuals who are mostly traders or low income earners. It is an interest bearing account with low interest. Opening a savings account requires a little cash or no cash at all. The characteristics of a savings account are:

1. Money can only be withdrawn occasionally if interest is to be paid
2. It attracts favourable interest rate
3. Withdrawals cannot be made by another person on behalf of the customer

• Current Account

A current account is mostly used by business owners for business transactions and a current account is accompanied by a cheque book. The money deposited cannot be withdrawn until the duration elapses.  Holders of current account can obtain loans and overdrafts from the bank. The characteristics of a current account are:

1. Money can be withdrawn frequently
2. Holders of current account are not entitled to interest on savings.
3. Customers are entitled to the use of cheque book
4. Payment of commission is made by the customer to the bank
5. Other people can withdraw money from the account on behalf of the customer

• Fixed Deposit Account

Money into the fixed deposit account is stored for a period of time usually a minimum period of 30 days and a maximum period of 180 days. The fixed account is opened by individuals or corporate clients looking to earn high interest on money invested. The characteristics of a fixed deposit account includes:

1. Money is deposited and saved in the account for a specified period of time as chosen by the customer. A minimum period of 30 days and a maximum period of 180 days.
2. It attracts a higher interest rate
3. A 7 days’ notice must be given before withdrawal

• Joint Account

A joint account is opened by two or more individuals who are all signatories to the account and no decision is made in this account without informing the other parties. The joint account is divided into two categories which are:

1. Joint-tenancy mostly operated by married couples
2. Tenants-in-common mostly operated by business partners

• Corporate Account

The corporate account is an account opened by big corporations and multinationals. The corporate account is totally different from the other banking accounts because it is majorly opened for business purposes

• Domiciliary Account

A domiciliary account is opened for the purpose of carrying out foreign transactions. The account can be used to transfer money to another country or receive foreign currency from other countries.

• Non-resident Nigerian Account

A Non-resident Nigerian account is a bank account designed for Nigerians living in the diaspora and want to operate a Nigerian bank account.

PROCEDURES FOR OPENING A BANK ACCOUNT IN NIGERIA

To open a bank account in Nigeria, the following steps should be taken

• Choosing a bank

In Nigeria, there are multiple options for you to choose from. You can select any bank of your choice based on the services they are offering or the account maintenance fees

• Prepare the documents

Different banks have their different requirements based on the type of account that you want to open. They include

1. Savings account

To open a savings account the Nigeria the following relevant documents should be provided:

• A government-issued ID card (driver’s licence, international passport, national ID card, permanent voters card)
• An utility bill reflecting the customer’s residential address (PHCN bill)
• Two or three passport-sized photographs

2. Current accounts

To open a current account the Nigeria the following relevant documents should be provided:

• A government-issued ID card (driver’s licence, international passport, national ID card, permanent voters card)
• An utility bill reflecting the customer’s residential address (PHCN bill)
• Two or three passport-sized photographs
• Two referees that must operate current accounts with the same bank.
• An initial deposit is to be made once served an account opening form

3. Opening of a bank account by a non-resident in Nigeria

If you’re planning to open a Nigerian bank account as a non-resident, you will need to provide a stack of paperwork, and sometimes a reference, or employer letter will be provided too. In many cases, the bank will want one or two references to vouch for your good character, usually from people who already hold an account with that bank. If you’re opening an account to pay your salary into, then you’ll probably need an employer letter confirming you’re employed. The requirements include the following

• Passport or another proof of ID such as a national identity card
• Application form, and minimum account balance if relevant
• One passport photograph of authorized signatory
• One or two reference forms or an employer letter
• Recent proof of your address such as a water bill, rent receipt or phone bill
• Residence permit proving you’re in the country legally

4. Corporate Account

The requirement for opening a corporate account in Nigeria includes the following documents:

1. Certificate of Incorporation
2. Tax Identification Number (TIN)
3. SCUML Certificate or Letter of Exemption
4. Valid IDs of Directors (photocopies)
5. Passport photo of each account signatory
6. Board Resolution

• Fill in the application form

An application form will be provided to you by the bank of your choice that must be filled and submitted with all the required documents

• Make your first deposit

Although this may not be compulsory by all bank account types, you will need to make an initial deposit depending on the specification of your bank

CONCLUSION

The bank you choose depends on many factors such as the proximity of the bank to your location, bank offers, interest rates, reputation etc. Banks have even made the process easy and you don’t need to go to the bank to create a bank account, it could be done from the comfort of your homes using a USSD code or using online platforms.

Depending on the type of bank account you want to open (savings, current, fixed deposit etc.), there is a wide array of banks that are available for you to choose from.

About the author

Onamakinde Dare Daniel is a highly motivated accountant with knowledge in Accounting, Taxation, Management, Audit, Costing and Research. He is keen on tax matters due to its ever dynamic nature.